Day Trading Mastery Manual
LEVEL 1: Beginner - Foundational Systems and Market Functionality
Core Competency:
- Understand how the market works, who the players are, and how trades are executed.
- Learn infrastructure and terminology: order types, price movement, bid-ask, liquidity, spread.
- Begin paper trading with 100% logging discipline.
Quantitative Focus:
- Risk per trade (max 1%).
- Track win-rate, average reward-to-risk ratio, and expectancy.
- Maintain a 30-trade sample of your initial paper trades.
Elite Tools and Platforms:
- TradingView - for simulation and charting.
- ThinkorSwim (TOS) - for realistic paper trading.
- TraderSync / TradeZella / Edgewonk - trade journaling.
Golden Resources:
- Book: "The Art and Science of Technical Analysis" - Adam Grimes.
- Book: "Understanding the Stock Market" - Richard J. May.
- Video Series: Investopedia Trading for Beginners.
- Course: Bear Bull Traders Beginner Course.
Drills:
- Place 100 simulated trades across different conditions.
- Each log should include: Entry, SL, TP, Setup Type, Market Type, Screenshot.
- Create a risk calculator spreadsheet.
Advancement Criteria:
- 100 documented simulated trades.
Day Trading Mastery Manual
- Understand all order types, bid-ask spread, slippage.
- Know how much you're willing to risk and why.
- Calculate Expected Value (EV) of your strategy.
LEVEL 2: Capable - Technical Structures and Backtesting
Core Competency:
- Master technical structures: support/resistance, channels, flags, double tops/bottoms.
- Perform manual backtesting of one basic strategy (e.g., EMA + engulfing).
- Understand market types (accumulation, markup, distribution, markdown).
Quantitative Focus:
- Backtest strategy across 50+ trades.
- Track Sharpe Ratio, profit factor, drawdown.
- Use ATR and volume in decision-making.
Elite Tools and Platforms:
- TradingView + Bar Replay Tool.
- Excel/Google Sheets - edge-tracking.
- BacktestRookies.com - manual backtesting guides.
Golden Resources:
- Book: "Technical Analysis of the Financial Markets" - John Murphy.
- Book: "Quantitative Trading" - Ernest Chan.
- Handout: Nial Fuller's Price Action Guide.
Drills:
- Backtest 3 strategies across 50 trades each.
- Compare win-rate, average reward:risk, drawdown, expectancy.
- Create a PDF report with results.
Day Trading Mastery Manual
Advancement Criteria:
- At least 1 strategy with:
- 50-trade backtest
- >55% win rate or >1.8 R:R
- Profit factor > 1.5
- Can explain volatility, trend exhaustion, consolidation.
LEVEL 3: Intermediate - Indicators, Tape Reading & Liquidity Structures
Core Competency:
- Understand and apply key indicators: VWAP, EMA/SMA clusters, RSI divergences, volume profile.
- Learn how to spot liquidity pools, order blocks, and smart money concepts.
- Begin understanding institutional price movement through tape reading and Level 2.
Quantitative Focus:
- Start journaling trades in multi-dimensional tags (e.g., setup + context + execution grade).
- Track metrics: win-rate by setup, average heat per trade, MAE/MFE distribution.
Elite Tools:
- Bookmap (for L2 data/tape reading), TradingView Pro, Edgewonk Advanced.
- Journals with tag-based analytics (e.g., TradeZella, TraderSync).
Golden Resources:
- Book: "Reading Price Charts Bar by Bar" - Al Brooks.
- Book: "Trades About to Happen" - David H. Weis.
- YouTube: SMB Capital Pro Training Excerpts.
Drills:
- Mark out liquidity zones and test 25 breakout/fakeout setups.
Day Trading Mastery Manual
- Execute 50 live/sim trades using VWAP + Structure + Confirmation Entry.
- Replay tape and record notes on big-volume reactions.
Advancement Criteria:
- 200+ lifetime trades with detailed journaling.
- Understand concepts like liquidity grab, inducement, and trap traders.
- Implement 2+ confluence filters in your strategy consistently.
LEVEL 4: Effective - Building a System & Macroeconomic Influence
Core Competency:
- Build a complete rule-based trading system (entry, exit, risk, management, optimization).
- Automate parts of your system: alerts, journaling, reporting.
- Begin dissecting macroeconomic events and their impact (CPI, FOMC, jobs data).
Quantitative Focus:
- Equity curve analysis, Expectancy score, Consistency score (weekly/monthly).
- Track improvement metrics: streak lengths, average down periods, time-in-trade.
Elite Tools:
- Excel + Python (for Monte Carlo simulations and backtesting).
- QuantConnect, Tradervue Elite, TradingEconomics.com for macro tracking.
Golden Resources:
- Book: "The Playbook" - Mike Bellafiore.
- Book: "The Mental Game of Trading" - Jared Tendler.
- PDF: SMB Capital's 30 Lessons for Traders.
Drills:
- Simulate your system with Monte Carlo (30,000 iterations).
Day Trading Mastery Manual
- Record your macro reactions vs market chart on big event days.
- Write and review your trading rules as if you're passing them to a hedge fund.
Advancement Criteria:
- Execute 100 live trades using your own system.
- Demonstrate edge with statistical consistency.
- Have 1-month of profits with >2R average per trade.
LEVEL 5: Experienced - Multi-Strategy Execution and Mental Mastery
Core Competency:
- Trade multiple setups and know when each has edge based on context (market regime, volatility).
- Apply advanced tape reading and liquidity mapping in real time.
- Understand your behavioral weaknesses and build resilience systems (trading psychology).
Quantitative Focus:
- Refine metrics: Average R per week, % days green, duration efficiency.
- Reduce time-to-execute decisions using pre-market game planning.
Elite Tools:
- DOM + Time & Sales: Bookmap, Jigsaw.
- Trading Journal with AI pattern recognition (Tradervue Elite).
- Customized Market Profile dashboards (Sierra Chart, NinjaTrader).
Golden Resources:
- Book: "One Good Trade" - Mike Bellafiore.
- Book: "The Hour Between Dog and Wolf" - John Coates.
- YouTube: FuturesTrader71, The Inner Circle Trader (ICT).
Drills:
Day Trading Mastery Manual
- Run 3 trading playbooks across 50 trades each, analyze performance.
- Journal emotions + triggers using Tendler's mental model tags.
- Simulate performance drawdowns + re-entry plans.
Advancement Criteria:
- Weekly PnL > 4R net positive for 4 weeks.
- Can adjust size/risk dynamically based on volatility and news.
- Display ability to stop trading during tilt or system breach.
LEVEL 6: Advanced - Capital Scaling, Semi-Auto Systems, Catalyst Trading
Core Competency:
- Trade at size. Manage position scaling, pyramiding, dynamic exits.
- Execute trades around economic catalysts with tight risk control.
- Begin building systems for automation, alerts, and semi-algo execution.
Quantitative Focus:
- Run statistical edge checks quarterly.
- Track alpha decay per strategy, optimize for edge-preserving tweaks.
Elite Tools:
- Python/QuantConnect for strategy coding.
- Custom dashboard with risk exposure, news feed, trading metrics.
- Trade copier for scaling same trades across multiple accounts.
Golden Resources:
- Book: "Adv. Algorithmic Trading" - Michael Halls-Moore.
- Book: "Alpha Trader" - Brent Donnelly.
- Course: QuantInsti EPAT.
Day Trading Mastery Manual
Drills:
- Create a Python risk monitor (max exposure, drawdown alert, etc.).
- Trade NFP/CPI releases with pre-defined strategy 5+ times.
- Forward-test one automation script for scalping.
Advancement Criteria:
- Trade > 300 contracts/shares daily with <0.5% slippage.
- Execute 5+ strategies across multiple conditions.
- Achieve 10R net/month consistently.
LEVEL 7: Distinguished - Performance Engineering and Thought Leadership
Core Competency:
- Build internal analytics platform for backtesting, journaling, and performance.
- Trade 6-figure account with capital preservation priority.
- Handle news, macro, technicals, and psychology in a unified mental model.
Quantitative Focus:
- Equity curves by strategy.
- Factor models: sensitivity to volatility, range, volume.
Elite Tools:
- Python + Pandas + Plotly Dash dashboards.
- News/Order Flow Analytics via Bloomberg Terminal or Koyfin Pro.
Golden Resources:
- Book: "Market Wizards" - Jack Schwager.
- Book: "The Trading Game" - Ryan Jones.
- Research: Alpha Architect, Quantocracy.
Day Trading Mastery Manual
Drills:
- Write whitepaper on your trading framework.
- Build 1 edge dashboard.
- Simulate hedge fund performance reporting.
Advancement Criteria:
- Net >15R monthly average over 3 months.
- 2+ playbooks fully written and backtested.
- Stress test framework across asset classes (FX, Crypto, Equities).
LEVEL 8: Master - Institutional Edge and Scalable Capital Engine
Core Competency:
- Become your own prop firm. Manage external capital, coach traders, automate systems.
- Build a full feedback loop: idea -> test -> scale -> review -> evolve.
Quantitative Focus:
- Sharpe >2.0, drawdown <20%, CAGR >60%.
- Run portfolio of 3+ uncorrelated strategies.
Elite Tools:
- Algo Trader (QuantConnect + custom broker APIs).
- Data: Quandl Premium, Bloomberg, TickData.
- Platforms: Koyfin, Portfolio Visualizer, Thinknum.
Golden Resources:
- Book: "The Man Who Solved the Market" - Gregory Zuckerman.
- Book: "Inside the Black Box" - Rishi Narang.
- Courses: WorldQuant, QuantInsti.
Day Trading Mastery Manual
Drills:
- Build a proprietary risk engine.
- Lead simulation of your firm with 3 sub-traders.
- Build a vault of all playbooks + checklists.
Advancement Criteria:
- 2+ years of consistent profitability.
- $100K+ managed capital.
- Scalable system with plug-and-play strategy modules.
